The transformation of value-added tax is to transform China's production-oriented value-added tax into consumption-oriented value-added tax, which is also called value-added tax reform or value-added tax transformation reform. Under the productive value-added tax system, the value-added tax included in the fixed assets purchased by enterprises is not allowed to be deducted before tax; If the consumption-oriented value-added tax is implemented, it means that this part of the tax can be deducted before tax. The vast majority of market economy countries that adopt the value-added tax system in the world implement consumption-oriented value-added tax. Because it is beneficial for enterprises to upgrade their equipment, it is quite popular with enterprises.
After the transformation, it can reduce the tax burden of enterprises, avoid the problem of repeated taxation, encourage enterprises to upgrade their products, and promote industrial restructuring and technological upgrading.
China began to implement the value-added tax reform from 1 month/day in 2009. For specific regulations, please refer to the Notice of the Ministry of Finance of State Taxation Administration of The People's Republic of China on Several Issues Concerning the Implementation of VAT Transformation Reform in China [2008] 1 70.
Weiming mingde